Americans must find the Australian Left hard to comprehend -- one that tries to spend LESS than it raises in taxes. Obama borrows 40% of what he spends. But surplus budgeting is a tradition in Australia. At the time the GFC hit, Australia had ZERO Federal debt. It's one of a number of ways in which Australia is more conservative than the USA. We are in nothing like the mess that the USA is in

FINANCE Minister Penny Wong has rejected any suggestion that bringing the Budget back to surplus in 2012-13 could trigger a recession. "It's the right thing to do to bring the Budget back to surplus," she told Network Ten yesterday.

Senator Wong said November's mid-year economic review forecast growth of 3.5 per cent and it "assumed the fiscal policy the Government's got in place".

She has rejected a suggestion by her Opposition counterpart Andrew Robb that a surplus would be achieved by fiddling the books.

Mr Robb said one example was the energy security fund to help coal-fired generators adjust to the carbon tax, scheduled to start on July 1. Labor will spend $1 billion this financial year and in each of 2013-14 and 2014-15 on the fund, but only $1 million has been set aside for next financial year.

"You don't come back to surplus simply through accounting," Senator Wong said. "You come back to surplus because you make hard decisions."

But Mr Robb said he wasn't convinced. He said Senator Wong was caught out and unable to explain why the funding for generators wasn't anything other than a dodgy accounting trick.

Source